The FTSE 100 looks set to start the week on the back foot this morning, tracking Asia lower, amid ongoing trade tensions between the US and China. BT Group (LON:BT.A) will be in focus today amid reports that it will sell its Italian division which was hit by an accounting scandal.
Index to open lower
IG’s opening calls suggest that the FTSE 100 will start the session 0.63 percent in the red at 7,634 points. The blue-chip index is likely to take cues from Asia where shares have retreated this morning amid worries about the trade tensions between the US and China. CNBC reported that on Sunday, President Donald Trump had called on other countries to end all trade barriers or face a new round of retaliatory measures.
“Until last week, there was vague optimism that we can muddle through this. But now it looks like, unless the US lays down its arms, things will be getting more chaotic,” said Hirokazu Kabeya, chief global strategist at Daiwa Securities, as quoted by Reuters. US shares rose on Friday night, despite the ongoing trade worries.
The Footsie rallied on Friday, adding 125.83 points to end the session 1.67 percent higher at 7,682.27, following an OPEC deal to modestly raise output.
Today’s macroeconomic releases include the German business climate IFO index for June, due out at 09:00 BST. In the US, the Chicago Fed index for May will be announced at 13:30 BST, to be followed by the nation’s new home sales data for May at 15:00 BST. On the corporate front, Carnival (LON:CCL) is scheduled to update investors on its performance today.
In other news, The Telegraph reports that BT has called in bankers to offload the Italian business which was previously hit by an accounting scandal.